Kalshi Ordered to Stop Offering Sports Event Contracts in Nevada
Kalshi must halt its sports-related event contracts in Nevada after a federal judge sided with state gaming regulators in a long-running jurisdictional dispute. The decision ends a seven-month injunction that had allowed the prediction market operator to remain active while it challenged a cease-and-desist order. The ruling also extends to a connected case involving Robinhood.
Injunction Lifted
The latest ruling dissolves the preliminary injunction that had protected Kalshi from immediate enforcement of a cease-and-desist order issued in March by the Nevada Gaming Control Board. With the injunction removed, the company must stop offering sports contracts in the state.
The case focuses on whether Kalshi’s contracts linked to sporting outcomes should be considered federally regulated swaps under commodities law or classified as sports wagers subject to state gambling rules.
Judge Andrew Gordon determined that Kalshi’s interpretation would conflict with long-standing principles of federalism in gaming oversight and concluded that the products fall within the scope of state regulation.
Change in Court Direction
The decision marks a shift from April 2025, when the court granted Kalshi temporary relief through a preliminary injunction. Recent enforcement decisions, including a similar denial in October involving Crypto.com, indicate a consistent judicial view that states retain authority over sports-related event contracts.
Nevada gaming regulators stated that they would continue to oppose any attempt to delay enforcement and insist that Kalshi must immediately comply with the order. They emphasised their intention to pursue legal avenues to stop what they consider unauthorised activity in the state.
Kalshi’s Response
Kalshi maintains that it operates as a federally regulated exchange for real-world events. The company argues that its markets fall exclusively under federal jurisdiction and reiterated its intention to appeal the ruling.
The ruling also affects a related case involving Robinhood, whose request to preserve user access to Kalshi’s sports contracts was denied. The Control Board confirmed that Robinhood has agreed to pause new sports event contracts in Nevada while the legal proceedings continue.
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